Martela Oyj - Company Announcement

Martela has sharpened its strategy and changed the guidance; Nordic countries to be the core market area

MARTELA CORPORATION     Stock exchange release    9 June 2016 at 11.00 a.m.



MARTELA HAS SHARPENED ITS STRATEGY AND CHANGED THE GUIDANCE; NORDIC COUNTRIES
TO BE THE CORE MARKET AREA 

Digitalization, diversifying workforce and needs to improve work productivity
and talent retention will all require more from working environments in the
future. Martela believes that Result Oriented Working Environments (ROWE) is
the answer to the changing work. Based on the market opportunities, Martela has
sharpened its Lifecycle strategy and has set its focus on the Nordic countries.
Thus the Company brand and market focus will have a clear Scandinavian
approach, as the Nordic countries have a common culture background and needs,
and are a forerunner in activity based office environments. 

To accelerate the implementation of Martela Lifecycle strategy in the Nordic
market area and to re-enforce Martela One approach to service offering and
market focus, the company has planned changes in its’ operations in Poland and
Russia. As a consequence Martela will withdraw its own sales operations in the
Polish and Russian markets. However, the production unit and purchasing
activities in Warsaw will continue its operations and will remain as integrated
part of Martela Customer Supply Management.  Company believes that the planned
changes will help focus and speed-up activities to implement Martela Lifecycle
strategy and improve the profitability. The planned changes are estimated to
cause maximum of 700 000 eur one-time costs. Furthermore, the planned changes
will have employee impact and therefore Martela will initiate consultation
process in Poland and will follow local legislation on employee reductions in
Russia. 

The planned activities will  change  the Group’s guidance for 2016 as follows:

Old guidance, published in April 2016:

The Martela Group anticipates that its revenue and operating result for 2016
will remain at the previous year’s level. Due to normal seasonal variations,
the Group’s operating result accumulates mainly during the second half of the
year. 

New guidance for 2016:

The Martela Group anticipates that the Martela Group’s revenue will slightly
decline compared to previous year, however the Group’s operating result will
remain at the level of 2015. Due to normal seasonal variations, the Group’s
operating result accumulates mainly during the second half of the year. 



MARTELA CORPORATION
Matti Rantaniemi
CEO


Additional information

Martela Corporation
Matti Rantaniemi, CEO, tel +358 50 465 8194



Distribution
NASDAQ OMX Helsinki
Main news media
www.martela.com

Attachments:

2016_0609_stock release.pdf